Editor’s Note: This post has been updated with new artwork. A previous version had a map of the Eagle Ford rather than the Permian Basin.
Capital expenditures for oil and gas exploration and production in Texas’s Permian Basin is expected to rise by 400 percent over the next five years—growing from the $8 billion in investments made in 2016 to an expected $40 billion by 2021, according to a new report from the Texas Oil and Gas Association.
The Permian already accounts for 45 percent of the total onshore oil production in the lower 48 states, the report said, and half the onshore oil rigs in the United States are operating in the Permian. The Permian produced 2.4 million barrels of oil a day last year—exceeding the daily output of any one of nine of the fourteen OPEC nations: Algeria, Angola, Ecuador, Equatorial Guinea, Gabon, Libya, Nigeria, Qatar, and Venezuela. A single day of natural gas production from the Eagle Ford can meet the natural gas needs of 230,000 U.S. homes for a month, the report said.
“Our nation’s ability to achieve and sustain energy dominance rests here in the heart of Texas,” TXOGA president Todd Staples said in a statement accompanying the report’s release. “Thanks to rich natural resources, advances in technology, and the know-how to capitalize on tremendous opportunity, Texas is helping to make the United States the global energy leader.”
In the September issue of Texas Monthly, I wrote about how the Port of Corpus Christi has become the top oil exporter in the United States.